The stocks of Blue Apron came tumbling down as Amazon registered a trademark that said “We do the prep. You be the chef.” Speculations are that Amazon will be entering the meal-kit business posing a serious competition to Blue Apron.
Blue Apron is a meal-kit delivery service with backing from many investors like First Round Capital, Fidelity and others. Currently, it is the largest one in US. However, since it went public last month, things have not been looking good for Blue Apron. More recently Amazon’s pending acquisition of Whole Foods has worsened the situation. And now, its stocks took another dive following Amazon’s trademark registration.
Amazon has been testing the waters for further expansion of its grocery business. AmazonFresh and AmazonGo compliment this. The pending acquisition of Whole Foods has caused a whole lot of ruckus in the market. And now, with the trademark registration, Amazon is making its way further and further in the grocery business.
The trademark application that Amazon has put forth says a whole lot about meal kits. The meal kits will contain frozen, prepared and packaged kits that’s have everything from meat, seafood, veggies and seasonings. But that’s not primary. The primary items consist of grains, rice, noodles, pasta, and bakery products. In addition, there will also be loyalty rewards with points and coupons and more. Leave it to Amazon to attract customers!
Amazon’s constant move to take over the retail and grocery market is being seen as a worrisome threat by other players. The meal-kit business is just one part of the entire war. But Amazon knows where its prized trophies lie. It is looking to rule the market and the groceries and food fall in the largest category.